Archive for 2013

Comment by OptionSage

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  1. OptionSage
    May 28th, 2007 at 6:33 pm

    One way of accounting for a massive move beyond the short option strike is to consider applying a bear call in conjunction with the calendar strangle as opposed to just a short call. The premium will be slightly lower obviously than simply selling the short call (since the bear call involves the purchase of a long call at a higher strike too) however if a huge move up occurred the additional long call – above the strike of the short call- keeps the trade nicely profitable.

    Hope that helps.

Comment by Joel

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  1. Joel
    May 28th, 2007 at 5:26 pm
    Wouldn’t this strategy be compatible with a large number of fairly volatile stocks? I would think that this would be a reasonably conservative strategy especially when employed within an account with portfolio margin. I think that the most concerning part of this strategy would be a large quick movement of the underlying that required a great deal of cash to repurchase either the put or call that was sold short. Is there any other serious concern when considering this strategy?

Comment by jere.wood

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  1. jere.wood
    October 22nd, 2009 at 4:27 pm
    I agree with diamond.  You have done a great job.  I get exasperated sometimes, and frustrated, because I keep missing trades when they run away from me as I wait for them to hit your numbers.    For example this morning I was trying to buy ERY and my first view was 10.81.  You thought it would push down at the open so I was waiting for it to drop a little but it ran away from me so I missed the play again.  While I was trying to buy ERY, ISIL was busy dropping.  When I switched focus from ERY to sell ISIL, it was down so I was waiting for it to hit the sell range of 13.90 to 14.00 as you recommended.  It never came close and I am still holding it, having bought at 14.05.    I did buy ERY this afternoon at 10.72.  I had planned to buy and hold ERY this morning anyway, feeling it was a good bet over the next few weeks or so that oil would be dropping.     I liked your "gamble of the day"  where we could buy the day before and take advantage of the pre-market spike.  So many times a lot of the meat is already gone by the time the market opens and we get what is left over.   The problems I have missing trades are due to my broker and my inexperience.  You keep up the good work, you are doing a good job man.

Comment by Turtle

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  1. Turtle
    June 1st, 2007 at 6:52 am
    Thx Sage

    I was asking the above questions for a more global outlook for all trades rather than the above trade. I thought it might be a good future topic to discuss. It is very helpful to learn “rules of thumb” . You , Phil and others on this site have helped me a great deal to better my trading and to focus on the key elements on trades. Thanks

Comment by smithjones2

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  1. smithjones2
    October 11th, 2011 at 3:47 pm
    French type Revolution?
    Power Abuses and Unfair Taxation
    The monarchs of the Bourbon dynasty, the French nobility, and the clergy became increasingly egregious in their abuses of power in the late 1700s. They bound the French peasantry into compromising feudal obligations and refused to contribute any tax revenue to the French government. This blatantly unfair taxation arrangement did little to endear the aristocracy to the common people.
    France’s Debt Problems
    A number of ill-advised financial maneuvers in the late 1700s worsened the financial situation of the already cash-strapped French government. France’s prolonged involvement in the Seven Years’ War of 1756–1763 drained the treasury, as did the country’s participation in the American Revolution of 1775–1783. Aggravating the situation was the fact that the government had a sizable army and navy to maintain, which was an expenditure of particular importance during those volatile times. Moreover, in the typical indulgent fashion that so irked the common folk, mammoth costs associated with the upkeep of King Louis XVI’s extravagant palace at Versailles and the frivolous spending of the queen, Marie-Antoinette, did little to relieve the growing debt. These decades of fiscal irresponsibility were one of the primary factors that led to the French Revolution. France had long been recognized as a prosperous country, and were it not for its involvement in costly wars and its aristocracy’s extravagant spending, it might have remained one.
    Sounds very familiar to me.  SJ

Comment by stjeanluc

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  1. stjeanluc
    October 7th, 2011 at 2:10 pm

    Data / QCMike – Do you mean for the backtesting? I will probably use a combination of Thinkback in TOS for quotes and my charting software (I used Amibroker and Neuroshell) for the actual technical analysis. I get my data from IQFeed. Since we are dealing with monthly and weekly charts you might be able to get that on Yahoo or MSN I guess. Since I don’t use them I can’t say how good their charting tools has some simple free charts but might not go back enough in the past for serious testing.

Comment by gatsby1965

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  1. gatsby1965
    September 1st, 2009 at 10:26 am
    Thanks David…Noon = Midnight in SNG.
    Any thoughts on why URE is moving down in light of postive data?

Comment by David Ristau

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  1. David Ristau
    September 1st, 2009 at 10:22 am

    Zuko – You can get all data right when its released from my old site. Go to It lists all the pertinent data, results, and links to main sites. Nice tool to use. Sorry about the lateness.

    Gatsby – They report the numbers it appears at Noon ET. Stock is running up into them. Not sure what time that would be in Singapore.

Comment by ilene

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  1. ilene
    February 11th, 2011 at 12:46 am

    Here’s an abstract of a study I found in pubmed.  Pharmboy doesn’t appear to take this very seriously (from what I can tell via an email). I happen to get very severe headaches from diet soda with aspartame – about 6 oz will do it.  So whatever the effects, I’m very sensitive to that particular one (according to the abstract below: "changes in regional brain concentrations of catecholamines, which include norepinephrine, epinephrine and dopamine"). 

    Direct and indirect cellular effects of aspartame on the brain.

    Humphries PPretorius ENaudé H.

    Department of Anatomy, University of Pretoria, Pretoria, Gauteng, South Africa.

    Comment in:



    The use of the artificial sweetener, aspartame, has long been contemplated and studied by various researchers, and people are concerned about its negative effects. Aspartame is composed of phenylalanine (50%), aspartic acid (40%) and methanol (10%). Phenylalanine plays an important role in neurotransmitter regulation, whereas aspartic acid is also thought to play a role as an excitatory neurotransmitter in the central nervous system. Glutamate, asparagines and glutamine are formed from their precursor, aspartic acid. Methanol, which forms 10% of the broken down product, is converted in the body to formate, which can either be excreted or can give rise to formaldehyde, diketopiperazine (a carcinogen) and a number of other highly toxic derivatives. Previously, it has been reported that consumption of aspartame could cause neurological and behavioural disturbances in sensitive individuals. Headaches, insomnia and seizures are also some of the neurological effects that have been encountered, and these may be accredited to changes in regional brain concentrations of catecholamines, which include norepinephrine, epinephrine and dopamine. The aim of this study was to discuss the direct and indirect cellular effects of aspartame on the brain, and we propose that excessive aspartame ingestion might be involved in the pathogenesis of certain mental disorders (DSM-IV-TR 2000) and also in compromised learning and emotional functioning.

Comment by Zuko775

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  1. Zuko775
    September 1st, 2009 at 9:50 am
    David, what is the best place to get the Housing Data ASAP?


Zero Hedge

Auto Shares Surge As Fiat, Renault Confirm Merger Talks

Courtesy of ZeroHedge. View original post here.

With President Trump in Japan for a state visit and most of Europe headed to the polls to vote in the quinquennial EU Parliamentary elections, there was enough news to keep market watchers occupied during what was supposed to be a quiet holiday weekend in the US. 

But on top of these political headlines, on Saturday afternoon, the news broke that Italian-American carmaker Fiat Chrysler had approached France's Renault with a merger proposal that would leave the shareholders of each carmaker with half of the combined company, in a tie-up that would create the world's third-largest au...

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Phil's Favorites

Trump and the problem with pardons


Trump and the problem with pardons

Courtesy of Andrew Bell, Indiana University

As a veteran, I was astonished by the recent news that President Trump may be considering pardons for U.S. military members accused or convicted of war crimes. But as a scholar who studies the U.S. military and combat ethics, I understand even more clearly the harmful long-term impact such pardons can have on the military.

My researc...

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Insider Scoop

Jefferies Sees 60-Percent Upside In Aphria Shares, Says Buy The Dip

Courtesy of Benzinga.

After a red-hot start to 2019, Canadian cannabis producer Aphria Inc (NYSE: APHA) has run out of steam, tumbling more than 31 percent in the past three months.

Despite the recent weakness, one Wall Street analyst said Friday that the stock has 30-percent upside potential. 

The Analyst

Jefferies analyst ... more from Insider

Kimble Charting Solutions

DAX (Germany) About To Send A Bearish Message To The S&P 500?

Courtesy of Chris Kimble.

Is the DAX index from Germany about to send a bearish message to stocks in Europe and the States? Sure could!

This chart looks at the DAX over the past 9-years. It’s spent the majority of the past 8-years inside of rising channel (1), creating a series of higher lows and higher highs.

It looks to have created a “Double Top” as it was kissing the underside of the rising channel last year at (2).

After creating the potential double top, the DAX index has continued to create a series of lower highs, while experiencing a bearish divergence with the S...

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Chart School

Brexit Joke - Cant be serious all the time

Courtesy of Read the Ticker.

Alistair Williams comedian nails it, thank god for good humour! Prime Minister May the negotiator. Not!

Alistair Williams Comedian youtube

This is a classic! ha!

Fundamentals are important, and so is market timing, here at we believe a combination of Gann Angles, ...

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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control


Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...

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DNA as you've never seen it before, thanks to a new nanotechnology imaging method

Reminder: We are available to chat with Members, comments are found below each post.


DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University


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More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...

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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism


The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...

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Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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Free eBook - "My Top Strategies for 2017"



Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:


·       How 2017 Will Affect Oil, the US Dollar and the European Union


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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>